Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

Banks under review following poor complaints handling

28 April 2010 / by Lois Avery

Tough action is to be taken on banks with poor complaints handling records, according to The Financial Services Authority (FSA).

The FSA found weaknesses in five banks' handling of customer complaints during a review of their services.

The review looked at the several banking groups responsible for over 70 per cent of the complaints firms receive and report to the FSA.

As a result five banks are being forced to make major changes to the way they deal with complaints and two of the five banks face further investigation.

Some of the issues uncovered by the review included poor standards of complaint handling within most of the banks assessed, including, a lack of senior management engagement and accountability for the delivery of fair complaint handling; poorly designed staff incentive schemes that made branch staff reluctant to pay redress to customers, even in situations where the bank was at fault; and the failure of banks to learn from previous complaints and to make changes to prevent similar complaints arising in the future.

It was not confirmed by the FSA which banks were investigated but Britain's five biggest banking groups are Lloyds Banking Group, Royal Bank of Scotland, Santander, HSBC and Barclays.

Dan Waters, the FSA's director of conduct risk, said: “A culture of fair complaint handling is an important indicator of whether a firm is committed to treating its customers fairly. It is vital that customers know that if something goes wrong, their complaint will be dealt with in a reasonable way and that they will get a fair outcome.”

However, the FSA did find examples of good and compliant practices in parts of some of the banking groups assessed.

“While we found some good practice, there is clearly evidence of unacceptable standards of complaints handling in banks. Delivering change in this area is a major priority and we are determined to use all the tools available to us to ensure that banks comply with our rules,” added Mr Waters.